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  1. pdch's Avatar
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       #21  
    Quote Originally Posted by chickenbutt View Post
    It'd take a while for them to be even breaking even on the first TouchPads sold then. Plus all the next generation ones that they're going to make with your plan. Not really a fast way for profit. You don't even know if the next generation will succeed and if people will buy them.
    Companies with pockets like HP have the luxury of not needing to make a fast profit. If you have a new product (and let's be honest here, the golden goose is WebOS, not the hardware) that is going into an established market, you have to start off taking hits to make gains. It's about winning the war, not the battle.

    Once you have built a loyal user base, they will not want to transfer all of their info to another platform if they can help it. Let's be honest about another point, the average consumer HATES change. Once you have them, as long as you give them good products for each leap in tech, they will stay. At this pricing, they are now picking up the average consumer, not just the techies. I personally know 8 families that tried all weekend to find a touchpad for their students because they can afford this pricing. There are more people wanting them than available units - that's all a company should need for motivation.l
  2. #22  
    Quote Originally Posted by pdch View Post
    Companies with pockets like HP have the luxury of not needing to make a fast profit. If you have a new product (and let's be honest here, the golden goose is WebOS, not the hardware) that is going into an established market, you have to start off taking hits to make gains. It's about winning the war, not the battle.

    Once you have built a loyal user base, they will not want to transfer all of their info to another platform if they can help it. Let's be honest about another point, the average consumer HATES change. Once you have them, as long as you give them good products for each leap in tech, they will stay. At this pricing, they are now picking up the average consumer, not just the techies. I personally know 8 families that tried all weekend to find a touchpad for their students because they can afford this pricing. There are more people wanting them than available units - that's all a company should need for motivation.l
    Consumers only hate change when its hard to change. Webos has none of the native applications or services that would make it hard to change. ios and android are different as so much is relied upon itunes and google services. Even Blackberry and WP7 has this advantage.

    The only thing going for it that Webos has is TTS (which is already usless and outdated) and syngery which isn't that important.
  3. #23  
    Quote Originally Posted by pdch View Post
    Companies with pockets like HP have the luxury of not needing to make a fast profit. If you have a new product (and let's be honest here, the golden goose is WebOS, not the hardware) that is going into an established market, you have to start off taking hits to make gains. It's about winning the war, not the battle.
    That's funny in that the reason HP canned the production of webOS hardware was that they were losing money on it enough to make an impact on their earnings per share. The short term "must please Wall St" mindset killed the hardware. If HP was talking the long term approach that didn't mind losing money at first, they would have initially had a lower price and stuck with it.
  4. pdch's Avatar
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       #24  
    Quote Originally Posted by hrminer92 View Post
    That's funny in that the reason HP canned the production of webOS hardware was that they were losing money on it enough to make an impact on their earnings per share. The short term "must please Wall St" mindset killed the hardware. If HP was talking the long term approach that didn't mind losing money at first, they would have initially had a lower price and stuck with it.
    I disagree, HP is just unfortunately being run by a guy who had no desire to make their mobility group work. Leo-tard's vision is to make HP another SAP. I guarantee you if Hurd had not gotten the boot, the touchpad would have launched at a MUCH lower price with MUCH better marketing. The corporate speak you hear is absolute nonsense spewed forth from the mouth of a man who just profited from spending $10 billion on a company that will most likely make HP a quick target of a hostile take-over from someone like Oracle.

    That is why this is more of what the BOARD MEMBERS of HP should do when they wake up today...
  5. #25  
    Quote Originally Posted by pdch View Post
    I disagree, HP is just unfortunately being run by a guy who had no desire to make their mobility group work. Leo-tard's vision is to make HP another SAP. I guarantee you if Hurd had not gotten the boot, the touchpad would have launched at a MUCH lower price with MUCH better marketing. The corporate speak you hear is absolute nonsense spewed forth from the mouth of a man who just profited from spending $10 billion on a company that will most likely make HP a quick target of a hostile take-over from someone like Oracle.

    That is why this is more of what the BOARD MEMBERS of HP should do when they wake up today...
    The board members played their part in this too, it wasn't just all Leo. You should read Gruber's latest piece on this:

    Daring Fireball: A Simple Explanation for Why HP Abandoned Palm and Is Getting Out of the PC Business

    And didn't Leo pick most (if not all?) of HP's current board.
  6. #26  
    With $300 build cost, $100 sale cost, and 30% profit on apps (not including overhead of running the store servers)...

    Then they need to make $200 in app profit per device to break even. So the customer needs to spend over $650 in app/music/video sales over the life of the device just for HP to break even. Let's be generous and say life of the device is 2-3 years. $20-$30 a month in app sales.

    Yes, there's the value of market share to the stock prices. And you can save a **** ton on advertising with prices that low... but does that make up the difference? Is $20 a month per touchpad really feasible longterm?
  7. cgk
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    #27  
    Quote Originally Posted by voodooaddict View Post
    With $300 build cost, $100 sale cost, and 30% profit on apps (not including overhead of running the store servers)...

    Then they need to make $200 in app profit per device to break even. So the customer needs to spend over $650 in app/music/video sales over the life of the device just for HP to break even. Let's be generous and say life of the device is 2-3 years. $20-$30 a month in app sales.

    Yes, there's the value of market share to the stock prices. And you can save a **** ton on advertising with prices that low... but does that make up the difference? Is $20 a month per touchpad really feasible longterm?
    Plus HP has just taught consumers that the real value of a Touchpad is $99, so the value proposition is different, when you try and put it back to $349, the perception is no longer than it is a premium product but HP is now trying to rip them off.
  8. #28  
    They could have started with selling the 32gb device at 300. Would of broke even, and would of had decent sales. Or they could of gone to 250, and taken an initial loss of about $50, while the cost went down. Then they could have upped the price next generation by $50, and broke even, or made a slight profit on each one (depending on which starting point they went with.) The problem is that $100/$150 is much too low, and hp can't suddenly raise the price by $100, since that would turn off too many people.
  9. cgk
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    #29  
    Quote Originally Posted by nimer55 View Post
    The problem is that $100/$150 is much too low, and hp can't suddenly raise the price by $100, since that would turn off too many people.
    This is the problem with firesales, it's now impossible to work out how many people are actually interested in tablets and how many are just free-loaders* who will never pay a realistic price for the product.


    * I'm a free-loader with no interest in tablets.
  10. #30  
    Quote Originally Posted by CGK View Post
    This is the problem with firesales, it's now impossible to work out how many people are actually interested in tablets and how many are just free-loaders* who will never pay a realistic price for the product.


    * I'm a free-loader with no interest in tablets.
    I grabbed them since they're cheaper than a Nook and arguably better. I would never have paid past $299 for a 32GB Touchpad however. I'd sooner grab another iPad or Android tablet for more.
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